Comments (10)

Buffet undoubtedly understands much about company value. He isn’t a student of economics and human nature, however. He buys strong companies he believes can continue to grow; but he rarely sells them. If your goal is to accumulate wealth to give away, you are not the typical investor who evaluates potential investments on a risk/reward ratio. Higher taxes reduces the reward. I would argue higher taxes also increases the risk (assume risk is the sum of all probably outcomes). Higher risk and lower reward translates into fewer deals people are willing to invest in.

The larger issue is that Buffett may be smart or not so smart. For him, this is a low-stakes statement because even very large taxes wouldn’t really do much to change his life.

He’s famous because he’s in the minority. Other “high-income” individuals would see a big difference in their standard of living with higher taxes. Buffett can say what he wants, but holding him up as the spokesperson for all those who would be taxed is erroneous and dangerous.

Buffet has already pledged to give away 99 percent of his wealth to philanthropic causes when he dies. Undoubtedly he views taxes a la the public good the same way. There was some research done at NYU this spring that suggests the wealthy are often inclined to pay more in taxes because of diminishing marginal utility of private goods.

I’m pretty sorprised it only costs that much money to operate this labrador, especially if they are using all the cutting-edge technology they mentioned in the article. However, I’m not sure how I feel about the fact that surgeons for humans will operate this dog. I didn’t even know that was possible.